CREDIT CARD MISTAKES YOU SHOULD AVOID

CREDIT CARD MISTAKES YOU SHOULD AVOID

                     

    CREDIT CARD MISTAKES YOU SHOULD AVOID 


Friends in this particular post we will see list of CREDIT CARD MISTAKES YOU SHOULD AVOID.

In today's age of hustle and bustle , credit cards have developed great importance in our lives . Getting a credit card is not a big deal today . One with a small monthly salary also can own one easily , thanks to umpteen number of private banks that have cropped over the last few years.

Infact today banks are more than happy to issue one to you . I'm pretty sure that many of you people must have got a call / mail asking to buy one .

Friends credit card offers at lots of conveniences to the users like

* credit card acts as a good substitute for cash .

* using credit cards you can buy products on easy monthly installment schemes from online sites.

* one can avail cashbacks n discounts using credit cards.

* if used wisely it can boost your CREDIT SCORE.

However you must remember that credit cards are like a double edged sword , if not handled properly then that little plastic card may land you in severe financial crisis.

So to all who are thinking to own one , here are LIST OF FEW CREDIT CARD MISTAKES YOU SHOULD AVOID.

1. PAYING MINIMUM BALANCE. 


While paying the bill , we get two options from the credit card bank . First option is to pay the MINIMUM BALANCE n the second one is to pay the ENTIRE BILL AMOUNT.

Friends many a times people tend to spend more than their monthly income through their credit card and when time comes for bill payment , they don't have enough money to pay it back , at that time they think paying MINIMUM BALANCE is the best way out .

It is very important to understand here that in this manner , they may get temporary financial relief, but in actual they will have to shell out a lot more money in the form of interest , because bank is going to charge a hefty rate of interest on your balance amount.

So first of all never spend , what you can't pay and never opt for paying MINIMUM BALANCE instead PAY ENTIRE BILL AMOUNT.

2. PAYING YOUR BILLS LATE.


Friends bluntly speaking , if you belong to that species of mankind who don't have financial discipline , of paying the debts on time , then it's my humble request stay miles away from credit cards.

Because delaying your card bill payment will not only attract heavy penalties but also will bring down your credit score.

And for those people who are bad at remembering their due date for bill payment , there is an option called AUTO DEBIT which allows your Bill's to be debited from your bank account. Personally I manage my credit card Bill's by AUTO DEBIT method .

3. KEEPING TOO MANY CREDIT CARDS.


We all have heard a saying " TOO MANY COOKS SPOIL THE BROTH " , In the same way having too many credit cards are only going to complicate things rather than making them easy .

For eg if a person owns too many of them at a time , it would be very difficult to track his / her expenses , remember due dates for payment of Bill's , has higher chances of getting the cards misplaced / stolen , would overspend.

So to keep things simple , i would recommend to keep not more than 2 or 3 cards .

4. WITHDRAWING CASH FROM ATM USING CREDIT CARD.


Withdrawing cash from ATM using your credit card is a mistake that has to be strictly avoided.

Friends when we spend / pay / shop through our cards, we get almost 45 to 50 days to repay it back and no interest is charged on that amount.

However the story changes , when we withdraw cash through ATM as bank starts charging interest from the same day of withdrawal.

But what to do if I have an urgent need of cash finmaster? Dont worry I have a way out , if you are under such circumstances.

Friends under such circumstances you can add money into any of your wallets ( like paytm , freecharge) using your credit card and then transfer that money into your bank account from your wallet. And then using your debit card you can withdraw cash from ATM machine without paying any charges.

5. WAITING TO REPORT YOUR LOST / STOLEN CREDIT CARD.


If your card is lost / stolen then you should report it to the concerned authorities before any fraud happens. In this way you will have no liability for the fraudulent charges.

CONCLUSION


So friends these were some common CREDIT CARD MISTAKES YOU SHOULD AVOID.

If you found this post helpful, do let me know in comments below.
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September 26, 2018 at 10:11 PM × This comment has been removed by a blog administrator.
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October 2, 2018 at 9:38 PM × This comment has been removed by a blog administrator.
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